Break-even Analysis Quiz by Shubhrata Shrestha | Sep 15, 2025 | 0 comments Break-even Analysis Quiz 1. Contribution per unit is calculated as: a) Selling Price ÷ Variable Cost b) Selling Price – Variable Cost c) Fixed Costs ÷ Contribution d) Total Revenue – Total Costs None 2. If a product sells at $20, variable cost is $12, and fixed costs are $4000, the break-even quantity is: a) 200 units b) 400 units c) 500 units d) 100 units None 3. The break-even point is reached when: a) Total Revenue = Total Costs b) Total Revenue > Total Costs c) Variable Costs = Fixed Costs d) Contribution = 0 None 4. Margin of Safety measures: a) The number of units needed to cover fixed costs b) The gap between demand and break-even sales c) The percentage of fixed costs recovered d) The profit margin per unit None 5. A positive margin of safety means: a) The business is already making a loss b) Sales are below the break-even point c) Sales can fall before losses occur d) Variable costs exceed selling price None 6. Target Profit Quantity is calculated using which formula? a) (Fixed Costs – Target Profit) ÷ (Selling Price – Variable Cost) b) (Fixed Costs ÷ Selling Price) × Variable Cost c) (Fixed Costs + Target Profit) ÷ Contribution per unit d) Total Revenue – Total Cost None 7. An increase in variable costs will: a) Lower the break-even point b) Increase the break-even point c) Have no impact on break-even point d) Always reduce total costs None 8. Which of the following is a limitation of break-even analysis? a) Considers both qualitative and quantitative factors b) Useful for multi-product firms c) Assumes linear cost and revenue functions d) Predicts exact future profits None 9. If fixed costs = $10,000, contribution per unit = $50, the break-even output is: a) 50 units b) 200 units c) 100 units d) 500 units None 10. Break-even analysis may be misleading because: a) It relies on accurate input data b) It shows profit and loss graphically c) It assumes contribution is fixed d) It ignores variable costs None Time's up Submit a Comment Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ
